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shows real significant progress in terms of industry A further challenge to the industry is to find a way to
transformation. Women (including all races) standardize the procurement procedures applied by
represented 8,3% of total equity, compared to 7% the different government departments. Procurement
in the June 2012 survey. procedures should be standard for the country, or
at least for the specific tier of government. The
Capacity Utilisation involvement of non-CESA members in government
tenders and procurement continues to threaten the
Capacity levels improved in the June 2013 survey
standard and performance of the industry. Non-
to 91%, after deteriorating to a level of 87% in the
Cesa members do not seem to comply with the
previous two surveys. A level of 91% is so far the
highest level reported by participating firms since same standards and principles as those firms that
the December 2008 survey when it was at 95%. are members of CESA. Whether this is linked to
complaints of below cost tendering during 2009,
Industry Challenges is not certain, but CESA members should be better
informed about engaging in below cost tendering.
Fraud and corruption is affecting the ethos of
Lack of attention to maintain infrastructure poses
our society, with a lot of talk and little action
a serious problem for the industry. Not only is
accompanying the growing evidence of corruption.
it much more costly to build new infrastructure,
CESA established an R1m anticorruption fund
but dilapidated infrastructure hampers economic
in order to take to take legal action against growth potential. The cost of resurfacing a road
municipalities and private companies that it
after seven years at current prices, is estimated at
suspects of having acted illegally in the award or
R175 000 per kilometer, compared to R3 million
securing of contracts. In July, CESA took steps to
per kilometer to rebuild, less than 6% of the
lodge its first case with the regional office of the
construction price. In many cases, infrastructure is
Public Protector which involves a district council. left to deteriorate to such a state, that maintenance
CESA is also engaging with National Treasury to
becomes almost impossible. In addition to this the
include the concept of an integrity pact into the
quality of technical personnel is argued by some
Public Finance Management Act and the Municipal
firms to have deteriorated, putting greater risk on
Finance Management Act.
the built environment sector.
Service delivery, especially at municipal level
CESA has on numerous occasions shown its
remains a critical burning issue. The consulting
support for both the National Development Plan and
engineering industry is threatened by incapacitated Vision 2030 of South Africa, which aim to enhance
local and provincial governments. As major clients
the economy and eradicate unemployment, poverty
to the industry, it is important that these institutions
and inequality, but believes that more work has got
become more effective, more proactive in
to be done at the SIPS level to breakdown these
identifying needs and priorities and more efficient in
programmes into tangible and costed projects so
project implementation and management. Pravin that a proper capacity towards delivery can be
Gordhan made it very clear that under spending of
measure in terms of skills and capital resources.
infrastructure budgets is a serious concern for the
industry, where only R177bn of the R266bn was
spent during 2010/11.
CESA Aon Engineering Excellence Awards -
Projects Greater than R250 million Category: Commendation
HHO Africa for the Atlantis Corridor ‘MyCITI’ System: Integrated
Rapid Transit Infrastructure for City of Cape Town

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